Why is the liquidation rate in the cryptocurrency contract market 99%, yet people are still throwing money in?
"Do you think low leverage is safe? Wrong!
90% of people can't even calculate 'real leverage'!"
You are not losing to the market, but to yourself.
Every day countless people are liquidated, but why do others keep coming? Because—the people who get liquidated support the people who make money.
"Leverage" is not what you think it is.
The "5x" or "10x" shown by exchanges are just risk control indicators of the platform and have nothing to do with your real risk!
Real leverage = your position / your stop-loss funds.
For example, if you have 10,000 USDT and use 10x leverage, but your stop-loss is only set at 100 USDT, then your real leverage is actually 100x!
90% of people die in these 3 traps:
"Holding on"
"Going all in"
"Emotional averaging up"
— You get liquidated because you gave the market the opportunity to kill you.
Contracts are not investments; they are a "body-snatching" game.
Question: Who's money is it that you earn from contracts?
Answer: The money of the liquidated people!
Bull market? Bear market? Not important!
You can make money whether the market rises or falls; the key is whether you can survive until the "money-picking moment."
Bull market: Retail investors FOMO chasing prices, you short at high positions.
Bear market: Retail investors panic selling, you buy at low positions.
"Risk managers" vs "Dreamers"
Dreamer: "This coin can increase by 100 times! Go all in!" (Result: liquidation)
Risk manager: "This position has a profit-loss ratio of 3:1, test order at 5% position, stop-loss is clear." (Survive, wait for opportunities)
The secret of professional traders:
"80% of the time in cash, 20% of the time picking money."
— You are not here to trade, you are here to wait for others to make mistakes.
With the same strategy, 80% of people still lose money—because of human nature.
"If you can't control risk, don't play contracts—otherwise, you are just a 'corpse' in others' eyes."
If you really want to make money, first learn to "not get liquidated."
Otherwise, you will always be someone else's ATM.
The more chaotic the market,
The less you should operate blindly!
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